I received a copy of Agreement in Principle relative to the $700 billion bailout being proposed and supported by Senate Democrats. The one page agreement from the U.S. Senate Banking Committee details guidelines to be put in place relative to taxpayer protection, oversight and transparency, home ownership preservation and Funding Authority.

... In the agreement in principle, there is the effect of a major earmark which commits money from future profits to be given to nonprofits organizations like ACORN, National Council of La Raza and potentially the National Urban League. This agreement clearly evidences that the Government expects to benefit in the future from the bailout when the values of property rises and mortgages or properties are then sold by the Federal government. The agreement 

... In the proposed bailout agreement, Sen. Christopher Dodd, the Senate Banking Committee and other Democrats desire to pre-direct that future funds (profits) not be returned to the taxpayers via the treasury but that they be used to underwrite potential questionable (maybe even illegal activities) of certain nonprofits which have had a hand in promoting and expanding access to no money down loans for minorities, illegal voter registrations and extensive lobbying activities.

In 1977 Carter birthed the CRA to encourage affordable housing lending to those who can’t pay.

In 1993 Clinton puts the CRA on steroids and mandates lending to those who can’t pay

In 2000-2003 many acknowledge that our banking system will fail if we continue to loan to those who can’t pay.

In 2008 the bail out bill to fix the problem caused by those wno can’t pay will derive assets that are to be sold by the government. And the proceeds from those sales will be given back to organizations who promote loans to those who can’t pay.

NO WAY!

This sounds like “Ground Hog Day”. Is Bill Murray putting together the bail out bill.

Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators.

''The regulator has not only been outmanned, it has been outlobbied,'' said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. ''Being underfunded does not explain how a glowing report of Freddie's operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work.''

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Representative Melvin L. Watt, Democrat of North Carolina, agreed. ''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.

55
posted on 09/26/2008 5:09:56 AM PDT
by Rome2000
(Peace is not an option)

A broker called our local news radio yesterday and said that banks and institutions are going to receive monies based upon the amount of foreclosures they have. So now their current goal is to accumulate as many foreclosurers as possible to cash in on more monies.

And Lindsey Graham didn't read the fine print very well. The verbiage indicates that "Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2)."

It appears that the way it is written, the 20% is only applicable to each asset that shows a profit and is not offset with the assets that end up at a loss. Following this logic, the majority of the funds "temporarily" borrowed would end up being either being lost or provided to ACORN. The ultimate cost to the taxpayers could exceed the $700B depending upon how many times this money is invested and returned.

Once again we are asking the same people who got us into this crisis to get us out. This crisis began with the Gumming of the Oil exploration industry years ago. The District of Corruption forced our Oil Industry to go overseas to explore so were forced to pay premiums for our most basic commodity. This finally contributed to the tightening of the Housing Industry when some people were forced to put more money into their cars tightening their budgets. The entire economy froze, tanks to increasing energy costs. This tightening hit right into the heart of the corrupt Mortgage Market which had its controls removed by repressive gummit Regs. The gummit removed all the underwriting verification that protected the banks leaving the vault open for this meltdown. This economic crisis was caused by the District of Corruption and their Mini Me press.

All tunnels of Corruption lead straight to the DNC nest. Communist regimes like Castro, Saddamn, Stalin etc, are completely corrupt with the Party members skimming off the top. So too is our Democrat Party. Like the above gummits lack of oversight, so too is the DNC due to the compliance of the Establishment press. As Repubs, we are used to playing football games w/the Refs in the other teams Jersey. The problem is that now we see the results of that negligent reporting. The Establishment medias corruption is the dirty water flowing through the Washington DC swamp.

This is not to say that the RNC is w/o corruption, it is; just look at the earmarks. The difference is that when we or ABDNC catches our politicians with soiled hands, they report it and we get rid of them. The DNC has no such oversight and have become a mafia. The DNC has no self or outside policing allowing them to openly allow graft and nepotism giving their Corruption free reign. Just as the corrupt Establishment press totes the water for the Whitewashes of Katrina, 911 and the Big Oil scandals, they will coverup this Freddie Fannie scandal hiding the truth from America. The Reporter has become the Drunk Dirty Cop in the Red Light District.

The Wall Street collapse was where all of this corruption finally settled. Crooks like Obabbles adviser Franklin Raines stole $90 million in 4 yrs and should have been jailed for fraud if there were any oversight. The entire company was gutted with Corruption by cooking books that shame Enrons and the theft of funds. This gummit organization had no vigilance since all of congress was on their payroll. The media will not investigate and the upcoming Whitewash will hide the truth for fear of hurting the Party. The good little soldiers at ABDNC will deflect the truth like the sock puppets they are. This time Wall Street couldnt stop a number of banks falling since there was nothing to hold up the House of Cards once money tightened and loans began to fail, bringing down the big Brokerages.

Greed and graft runs freely through the swamps of DC. From Do Nothing Nancy whos son works for Countrywide and received a $185K job that he doesnt attend at InfoUSA to Reids real estate deals and Obamas $100K from Freddie/Fannie Mae. These bribes are repaid by turning a blind eye to their buddies corruption. You could go on but the bribes to Chris Dodd, the clintons, Obummer, Byebiden, Frank, Jefferson, Stevens and the rest of the mob. Pouring another $Trillion into this turlet will accomplish nothing more than lining the same pockets that have been greased in the past. Until we close the Barn Door and open the Cell Doors, we are only putting off the inevitable Crash. There is a possibility that the Kennedy family could cause 2 Great Depressions, Quite a record.

Why in the world should we pour another $Trillion into this overflowing sewer? It will be stolen just like the last trillion and the ones before that. The only answer to this is to Declare a War on Corruption. We have one Presidential candidate who is up to his ears in Freddie Fannie Mae as well as nearly a $Billion in earmarks and one who is not. One who took an obvious bribe through his wifes employer and one who has never taken a bribe.

We need to elect McCain . He is the only one independent and knowledgeable enough to require a free and open investigations. Everyone who is dirty no matter the Party needs to be Tarred and Feathered. McCudas first step is to allow Drilling and streamline it to stop the Envirokook Judges from stopping it. He then needs to eliminate Pork/Earmarks exposing those who are feeding at the Trough. This will send a message that we the people are tired of the Dist of the Corrupted. The new politicians need to clean up their act and write regulations that will eliminate nepotism and graft to let politicians know that there is a cell waiting for them.

The final step is to fire all the reporters and hire journalists that are more than ugly cheerleaders. If they want to work for the DNC fine, go. We need journalists who are willing investigate Corruption no matter where that path leads. This would likely end the careers of most of DC as well as 20% of Wall Street to put America back on track. Until we Ratproof the Silo theres no point filling it w/our Wheat. For this election, Its the Corruption Stupid.

The new Foreclosure Prevention Act recently enacted is great news for current homeowners and those looking to purchase.The legislation, however, is complex.

LoanSmart Inc. has created a special blog dedicated to the Foreclosure Prevention Act, which explains in layman’s terms pertinent sections of the act.

“Not every consumer is going to read all 796 pages of this legislation. The blog cuts through the clutter and highlights relevant information pertaining foreclosures and purchasing a new home,” said Joe Engle, president of LoanSmart Inc.

Here are some of the key provisions:

Homebuyer Tax Credit. Qualified buyers can receive a tax credit up to $7,500. The eligibility requirements are $75,000 annual income for single individuals and $150,000 annual income for married couples. The credit is like an interest-free loan and is repayable over 15 years on a payment schedule of $500 per year.

FHA Reform. New permanent loan limits will be set at $625,500. Seller-funded down payment assisted programs will end Sept. 30 and the down payment requirement on FHA loans will go up to 3.5 percent from 3 percent.

FHA Foreclosure Rescue. Development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85 percent of the current appraised value and qualified borrowers would get a new FHA 30year fixed mortgage at 90 percent of appraised. Borrower would have to share a portion of all future appreciation with FHA.

Engle said the new act should reduce foreclosures and motivate others to invest in a home.

For more information about the new Foreclosure Prevention Act call (805) 915-2600 or visit www.loansmartinc.com.

Providing $4 billion in funding for communities to purchase and redevelop foreclosed-upon properties. Homes that have been foreclosed-upon and are sitting unoccupied on the market can sap neighboring homes of their value, and lead to a cycle of community distress. Title II of S. 2636 allows localities with the highest foreclosure numbers and rates access to Community Development Block Grant (CDBG) funds to use toward purchasing these properties, rehabilitate them if necessary and rent, re-sell or otherwise redevelop them. Productive occupancy of foreclosed homes will help stimulate economic activity and help prevent further loss of home equity in struggling neighborhoods.

/excerpt

I think these grants are already available. We have been putting bids in on short sales and the homes we have bid on to date have been bought out of foreclosure with no negotiations to the bidders and listed as new resales. I was wondering who was eating the debt.

I don’t know. I can pull posts and threads off of FR from years back showing collective roars. It just seems to get more blatant. Back during the Clinton era and even before, you had to dig for the corruption. Since Bush or 9/11, no more digging is needed. It is out there for all to see in the new media. I don’t see a difference. I see only more out in the open corruption.

That is why it is absolutely urgent the GOP return to conservative roots and fight all this malfeasance.....but they won’t. Duncan Hunter and Tancredo had a total of about 5% support between them, while all libs carried the day in the primary.

I just don’t get it on the bailout plan. Our issues, and things that matter to conservatives  such as a capital gains tax cut, limited governmentt  are immediately scoffed at, and ruled non-starters, because of the enormity of the consequences the American economy faces. But this bailout seems to be developing into a lefty Christmas tree, and that’s just something conservatives will just have to swallow. Unless ACORN gets sprinkled with this pixie dust, unless John Sweeny and his hugely overpaid labor buddies get their wish list adopted http://tinyurl.com/3g8338 , we are going to have a depression? Stop the world, I want to get off.

Most of these outfits, like Fannie Mae, were money laundering operations to funnel millions in contributions to the same outfits like Laraza, acorn, rainbow coalition, etc..
The dems need a way to keep $ funneled to these non profits for pure political purposes. Its all about community organizing.

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